Fintech Startup axiTrust Targets $5 Million in Series A Funding

Fintech startup axiTrust is negotiating a Series A funding round to raise approximately $5 million, according to individuals familiar with the matter. The investment is expected to be led by Singapore-based Argor.vc, with participation from existing investor General Catalyst.

The company did not respond to requests for comment regarding the potential funding. This proposed round follows a $2.6 million seed investment secured by the firm last year, which was also led by General Catalyst. Other existing investors in the company include Atrium Angels, YAN Network, and Supermorpheous.

Expanding Digital Surety Bonds

Founded in 2024 by Aditya Tulsian, Rajeev Chari, and Mukund Daga, axiTrust specializes in the issuance, underwriting, and management of digital surety bonds. These financial products serve as insurance-backed guarantees designed to replace traditional bank guarantees. Unlike bank guarantees, which often require locked capital as collateral, surety bonds allow businesses to pay a premium to secure contractual obligations.

The startup intends to use the new capital to build digital infrastructure aimed at accelerating the adoption of its surety bond offerings. According to the company, more than ₹15 Lakh Cr of working capital for micro, small, and medium enterprises (MSME) is currently tied up as collateral for traditional bank guarantees. The company claims that digital surety bonds can unlock this capital, expand credit access, and simplify business transactions.

Market Context

The fintech sector in India remains a significant area for investment due to the substantial, underserved lending market. Data from the Inc42 Indian Tech Startup Funding Report for Q3 2026 indicates that the fintech industry recorded $243 million in funding across 13 deals during that period.

Why it matters: The company seeks to address inefficiencies in the lending market by digitizing surety bonds. By reducing the need for collateral-heavy bank guarantees, these solutions aim to increase liquidity for businesses and improve credit access, addressing a critical financial gap for MSMEs.